Report Title:

Affordable Housing Loan Revolving Fund

Description:

Establishes the Affordable Housing Loan Revolving Fund to receive funds from developers to provide low-interest home loans to qualified households.

HOUSE OF REPRESENTATIVES	H.B. NO.	2990
TWENTY-FOURTH LEGISLATURE, 2008
STATE OF HAWAII

A BILL FOR AN ACT

relating to housing.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  Chapter 201H, Hawaii Revised Statutes, is amended by adding a new section under subpart B of part III to be appropriately designated and to read as follows:

     "§201H-   Affordable housing loan revolving fund; loan program. (a)  There is established within the corporation the affordable housing loan revolving fund.  The affordable housing loan revolving fund shall consist of:

(1) Fees collected from developers under subsection (b);

(2) Funds appropriated by the legislature to the fund or contributed or transferred to the fund; and

(3) Funds received as repayment of loans and interest payments.

(b)  Developers of all housing projects shall contribute a percentage of the gross sale price received from the sale of the project to the affordable housing loan revolving fund.  The percentage of the gross sale price to be deposited into the affordable housing loan and revolving fund shall be determined by the corporation and shall be at least two per cent, but no more than six per cent.

(c)  Moneys in the affordable housing loan revolving fund shall be expended by the corporation to provide home loans to eligible borrowers as determined by the corporation; provided that:

(1) The eligible borrower shall meet the owner-occupancy requirements under sections 201H-47 and 201H-92; and

(2) Loans are provided at interest rates of no less than an annual percentage rate of one per cent and no more than three per cent.

(d)  Upon the sale of a home financed under this section, five per cent of the sale price of the home shall be deposited into the affordable housing loan revolving fund.

(e)  All interest earned on the deposit or investment of the moneys in the fund shall become a part of the fund.

(f)  The corporation shall submit an annual report to the legislature on all the moneys deposited into and disbursed from the affordable housing loan revolving fund."

     SECTION 2.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect on July 1, 2008, and shall not apply to developments that were initiated prior to the effective date of this Act.

INTRODUCED BY:

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